Put more down on new car or pay off more of my trade in?

  • Thread starter Thread starter ca_twin
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ca_twin

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I am looking to get a new car and owe about 5k more on my current car then they will give me as a trade in. I can't afford to do a private sale and pay the difference so the only options I have is either (1) have a bigger down payment to help offset the negative equity added to the loan or (2) pay down my current loan as much as I can in the next 3 months and then have little down payment. Not sure which way will have a greater impact on lowering the negative equity added to the new loan.
 
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